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GeekWire reports that the US Postal Service "is asking federal regulators to approve a two-year test of USPS delivery of 'groceries and other prepackaged goods' in the early morning hours in big cities across the country, expanding beyond an initial test the Postal Service has been conducting with Amazon Fresh in San Francisco.

"The filing yesterday with the Postal Regulatory Commission says that the expanded grocery delivery service could bring in more than $10 million in annual revenue for the Postal Service, but not more than $50 million per year. It’s part of a broader attempt by the USPS to diversify its business."

The filing reads, in part: “Grocery delivery services are expanding across the nation, with businesses ranging from the nation’s largest retailers, to niche operators, to the popular car service Uber entering the marketplace … With its operational reach, the Postal Service has an opportunity to provide retailers a nationwide solution that offers a trained workforce and the trust and reliability of the Postal Service brand. By expanding its carrier services and offering customized delivery, the Postal Service can garner profitable revenue through new revenue streams.”
KC's View:
This is what I've long argued - the only way for the USPS to be more competitive is by being more competitive - offering better service and being more relevant to its users. Amazon isn't mentioned in the filing, but aligning itself with Amazon seems to be a big part of this strategy, and it makes a lot of sense.